Prepare and submit a one page document that answers the requirements at the end of Case 1 on page 99 of your e-Text. Please write your answers in essay format.
Requirement #1
Should Lynne debit the Dividends account rather than the Legal Expense account?
Requirement #2
Do you agree with her thought that it really doesn’t matter how the $3,800 payment is shown as long as it is shown somewhere?
Requirement #3
Considering that Lynne owns all of the Liberty Physical Therapy, Inc., common stock, does she have any ethical responsibilities to properly record each business transaction?